The bullish sentiment is back and investors have started pouring money into their favorite blockchain projects. The question that most investors think is which currency will have the largest rate of return (profit)? Is Bitcoin – the largest capitalized cryptocurrency in the market, or smaller altcoins?
Grab Bitcoin or risk choosing Altcoin?
Some comparisons hold Bitcoin and Altcoin
- The most decentralized project
- Having the most users
- Excellent computer scientists are working to promote network development.
- Get full infrastructure support
- The most important factor for traders: Bitcoin is also the most liquid and the most secure network, with the highest POW hash rate to validate transactions.
- There is usually volatility and the risk is much higher than Bitcoin
- Not safe, not much liquidity
- Vulnerable to hackers due to low hash rates
- Some altcoins have a developer and the direction of development is unclear
- Want to invest and altcoin, you need to consider each different types before deciding to invest in the long term
Altcoins are usually highly volatile
This is one of the major factors that make altcoins extremely attractive to the eyes of risk-takers. The more risk, the higher the profit!
In 2017, some traders became millionaires thanks to an altcoin with a very small capitalization, but suddenly received a lot of attention because of a partnership, or new feature.
However, most altcoins have lost more than 90% value of them in the bear market of 2018, and a number of dead projects led investors to hold a bag of worthless tokens. That is why big profits always come with high risks.
Bitcoin has lost more than 80% of its value many times, but they have also increased from $ 0.06 to an all-time high of $ 19,891, up 33,151,566.66%.
While Bitcoin is highly volatile, its limited supply and consensus rules make it a safe investment compared to most altcoins, with almost the same growth potential. unlimited.
If you plan to invest in Altcoin, then you need to spend a lot of time to scrutinize it, and don't blindly believe in the projects that are introduced as “above all”.
Note: This article is for reference only, not investment recommendation.